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TDS Return Filing

Tax withheld by the payer or deductor prior to transferring funds to the payee or deductee during a transaction is known as TDS (Tax Deducted at Source). For instance, before paying you (Payee/deductee), your employer (Payer/deductor) deducts a certain amount as tax (TDS) from your income. After that, the money that was taken out is remitted on your behalf to the government. You will have your total tax liability offset by this TDS. People are, therefore, unable to avoid paying taxes because the government is aware of their income and financial activities, and the taxes they owe are recorded.

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Understand TDS Return filing

The deductor is in charge of filing the TDS return with the Income Tax (IT) department in addition to remitting the tax. The TDS return filing is a quarterly report that offers a summary of every transaction done during that quarter that is relevant to TDS. It typically contains details on the TDS amounts that were gathered and deposited with the IT division. A TDS return contains other Information such as PAN Card [both deductor and deductee], TDS remitted with the government, Information about the TDS challan used to pay taxes and other additional details. Following the successful filing of the TDS returns, the data appears on Form 26AS.

Are you eligible for a TDS Return?

If you are looking forward to knowing more about TDS returns or TDS Filing, then before anything, it is important to check whether you are eligible for a TDS Return or not. Following are certain criteria to check the eligibility for the TDS Return or TDS Filing.

  1. An Individual, group of Individuals, Association of Individuals, Limited Companies, Hindu United Families, local Authorities, partnership firms, etc., are eligible to be deductors for TDS Return.
  2. According to the Income Tax Act, TDS Return Filing is done against pay-outs like Salary Income, Insurance Commission, Income on Securities, Income on Lottery winning, Horse Race winning, payout towards NSC, etc.
  3. Employers or organizations with valid TANs are eligible to file TDS returns.
  4. Individuals with accounts that are audited as per Section 44AB and hold an office under the governmental or company authority are eligible to file online TDS returns each quarter.

Forms you need to know for TDS Return Filing

Following are certain forms that you need to know if you are looking forward to TDS Return Filings, as these forms will be extensively used in the entire process.

  1. Form 24Q: Used as a statement of TDS on Salary Income
  2. Form 26Q: Used as a statement of TDS on non-salary Income
  3. Form 26QB: Used as a statement for TDS against payment of immovable property
  4. Form 27Q: Certificate for TDS on Interest, dividends (payable to NRIs), and the foreign companies
  5. Form 27EQ: Used as a statement for TCS.

Check the deadlines

The deadline for TDS Return Filing for the current Fiscal Year tends to be the following:

  • Quarter 1: 31st July 2024
  • Quarter 2: 31st October 2024
  • Quarter 3: 31st Jan 2025
  • Quarter 4: 31st May 2025

Process of TDS Return filing

Step 1. Download & Fill the Form 27A

Your first step is to download the Form 27A from the government website.  This form contains multiple columns that are required to be filled out completely. Do not forget to verify the form along with the e-tds filed online if the hard copy of the form has been filled out.

Step 2. Verify the TDS amount

Next, you have to verify if the tax deducted at source and the gross amount paid is filled correctly and has been trailed in the respective forms.

Step 3. Specify the TAN

Now, you have to mention on Form 27A the TAN of the company or organization for which you are filing the TDS return; make sure it has been mentioned correctly, as incorrect information creates a series of hassles in the verification process.

Step 4. Mention the details

Fill in all the required details, such as the challan number, the mode of payment, and the tax, on the TDS Return. Mismatch in Information or incorrect Information will lead to rejection of the TDS Return filing, and you will have to do the TDS filing again.

Step 5: TDS Submission

The basic form used for e-TDS filing should be used in order to achieve consistency, and the 7-digit BSR should be entered to ease the tallying process. Afterward, submit the TDS at the TIN-FC for the physical TDS or submit the TDS through the official website of the NSDL TIN for the online TDS filing. This process will ask you to use a level 2 digital signature if you are the deductor.

Step 6. Final receipt

You will either receive a token number or a provisional receipt if all the Information filled in is correct, which acts as a confirmation of TDS filing. In the case where the TDS Return has been rejected, you will receive a non-acceptance memo that will show the reason for the rejection. Consequently, you will again have to do the TDS Return Filing.

Few common TDS Rates

Though the TDS rate list is quite extensive, here are certain common TDS Rates for reference:

  • For interest on securities: 10%.
  • For dividend income: 10%.
  • For interest on post office deposits, bank deposits, or cooperative society deposits: 10% for senior citizens (threshold limit ₹50000 and others (threshold limit ₹ 40,000).
  • For payment to contractors or subcontractors [individuals or HUF]: 1% and 2% for others
  • For payment to contractors or subcontractors [others]: 2% [threshold limit Rs. 30,000 for single transactions and Rs. 1,00,000 for aggregate transactions]
  • For rent of plant and machinery: 2% [Rs. 2,40,000 threshold limits]
  • For rent of land or building or furniture or fitting: 10% [Rs. 2,40,000 threshold limits]

What happens when you do late TDS Filing?

In the case where you do not file the TDS Return within the prescribed timeline, you will be subject to penalty imposition under Section 234E of the Indian Income Tax Act. Consequently, Rs 200 will be imposed on you for each day delayed in the filing. However, in the matter where you do not file a TDS Return, a penalty of Rs 10,000 can be imposed on you, which can extend up to Rs. 1,00,000, along with the late filing fee. Moreover, not just non-filing but filing an incorrect TDS/TCS return can also result in penalties. However, if you can demonstrate that you have paid the due taxes, late filing fees, and any applicable interest to the government, and you have filed the return within one year from the due date, you will not incur penalties for delayed filing.

How does RegisterKaro help in the process?

  • Pool of Experts

RegisterKaro holds a large pool of Experts from all over the world specializing in TDS Return Filing registration.  Our team of experts makes sure that your work is taken care of in the most effective manner possible.

  • Cost-effective

RegisterKaro TDS Filing services are of premium quality at the most efficient rate, which suits the client’s pocket, making sure that quality service is not the only thing the client gains on our platform.

  • Client-oriented approach

Our team of experts is well trained and equipped with a client-oriented approach, keeping in mind that the process must be client-centric, focusing on meeting all the requirements of their business and, therefore, satisfying their needs.

  • Process Alteration

For the fact that we focus on a client-centric approach, we keep our process structurization open for the client to alter it as per their need, requirements, and vision.  For us, obtaining the best results is the focus, along with the Client satisfaction.

  • Trusted partner of 10000+ Clients

RegisterKaro has earned the trust of more than 10000+ clients who have availed of TDS Filing Services.  Their trust in us from a term in continuity is proof of our services backed by quality and assurance.

FAQs

  • How is the TDS return filed?

Step 1- Check the official e-filing portal and tap on ‘Login Here.’

Step 2- Enter either your TAN or user ID with a password.

Step 3- Click ‘Login,’ click on the ‘TDS’ section, and select ‘Upload TDS.’

Step 4- In the given form, check the relevant statement details [such as the FVU version, Form name, financial year, upload type, quarter]

Step 5- Select ‘Validate’ to check the statement details.

Step 6- Upload the TDS statement along with your DSC (Digital Signature Certificate).

Step 7- Upload the ZIP file for the TDS statement.

Step 8- Attach a signature file and Click ‘Upload.’

  • What are the four types of TDS return?

Four types of TDS include TDS at Salary Income, TDS at non-salary income, TDS at payment against immovable property, and TDS at income from interest, dividends, etc.

  • What is 24Q and 26Q?

Form 24Q: Used as a statement of TDS on Salary Income

Form 26Q: Used as a statement of TDS on non-salary Income

  • Who is eligible for a TDS refund?

If you have made financial declarations at the beginning of the year, which tend to be lower than the investment bucket at the end of the year, then you are eligible to file a claim for a TDS Refund.

  • How to file TDS step by step?

Step 1- Check the official e-filing portal and tap on ‘Login Here.’

Step 2- Enter either your TAN or user ID with a password.

Step 3- Click ‘Login,’ click on the ‘TDS’ section, and select ‘Upload TDS.’

Step 4- In the given form, check the relevant statement details [such as the FVU version, Form name, financial year, upload type, quarter]

Step 5- Select ‘Validate’ to check the statement details.

Step 6- Upload the TDS statement along with your DSC (Digital Signature Certificate).

Step 7- Upload the ZIP file for the TDS statement.

Step 8- Attach a signature file and Click ‘Upload.’

  • What is the TDS rule?

TDS was introduced by the government to collect the tax at the very source of income that is rendered to the receiver. A person or deductor who is liable to pay the deductee a certain amount of money in return for service then remits the deducted amount to the account of the central government on behalf of the deductee.

  • Is TDS filed every month?

No, TDS is only filed quarterly following the months of July, October, January, and May.

  • What is the TDS in salary?

TDS is a practice of deducting Tax by the employer before crediting the salary of the employees and then remitting it to the government on behalf of the employees. This is known as TDS in Salary.

  • In which month TDS is filed?

TDS can be filed quarterly following the given due dates:

  • Quarter 1: 31st July
  • Quarter 2: 31st October
  • Quarter 3: 31st Jan
  • Quarter 4: 31st May
  • What happens if I file TDS late?

In case you do not file a TDS return or delay in filing the TDS Return, then you’ll be liable to pay late fees under Section 234E and a penalty as per Section 271H.

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